Keynesians often regard monetarism as a relic of the 1970s, with no real presence in the modern world. In one sense that is true. But in another sense it could not be more wrong.
Bennett McCallum is a long time proponent of a policy rule that would adjust the monetary base in such a way as to stabilize GDP growth. Ideas have consequences. He published his proposal way back in 1980. Don’t let anyone tell you your plan is “politically unrealistic.” If it’s the right thing to do keep fighting for it relentlessly.
Japan is the only developed country where GDP growth in 2013 has recently been well above the 20 year trend, but to get there we would have to have the last 5 years again for another 5 years...
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